$10 cauliflower is just the beginning: Canadian grocers, retailers warn more price increases on the way

The Canadian dollar’s accelerated weakening in recent weeks has had an immediate effect on prices of fresh produce, most of which is trucked in from warmer climes. Shoppers were shocked to see $5 bunches of celery and $10 cauliflowers.

The Canadian dollar’s plunge to a nearly 13-year low this week has grocers, fishmongers and other import-reliant retailers warning that shoppers can expect further price increases in the coming months.

Data released on Friday showed Canada’s annual inflation rate rose in December as food prices surged. Canadians paid 4.1 per cent more for food purchased at stores, mainly due to higher prices for fresh fruit and vegetables.

The currency has dropped along with the country’s economic prospects as the price of oil, an important export, tests its lowest levels since 2003.

The Canadian dollar’s accelerated weakening in recent weeks has had an immediate effect on prices of fresh produce, most of which is trucked in from warmer climes. Shoppers were shocked to see $5 bunches of celery and $10 cauliflowers.

“Prices are going through the roof,” said Anthony Pronesti, owner of Urban Fresh Produce at the bustling St. Lawrence market in central Toronto. “From my cash register, I hear them yelling, ‘Oh my goodness, $13 for strawberries! You must be insane.'”

He said the slump had radically altered his purchasing decisions. For example, he did not buy any asparagus or cauliflower for a week for fear they would not sell.

For Toronto fishmonger Harry Kim, his biggest short-term advantage over rivals is a bigger freezer, which gave him the ability to commit to larger U.S. dollar-denominated orders of Atlantic salmon or Chilean sea bass before the domestic currency’s latest slump.

But he said he could not keep shouldering the losses and recently raised his retail price for fresh halibut.

“This last drop, when (the Canadian dollar) got under 70 U.S. cents, has everyone in a panic and everyone talking about how things are going to be in two months,” said Kim.

Other retailers, who have so far mostly swallowed shrinking margins, said they would probably recalibrate for currency weakness at the same time they pass on a manufacturer’s typical price rise early in the year.

“The price for a TV, or any big ticket item, is definitely going to jump up in the next month or two,” said Leif Quraeshi, who imports and distributes high-end baby goods to retailers.